Daily Digest 6/13/2019 (FCC Oversight Hearing)

Benton Foundation
Table of Contents

FCC Oversight

Senate Commerce Committee Oversight Hearing of the Federal Communications Commission  |  Read below  |  Robbie McBeath  |  Benton Foundation

Broadband/Telecom

3rd Quarter 2019 USF Contribution Factor is 24.4 Percent  |  Read below  |  Public Notice  |  Federal Communications Commission
Comments Due July 15 in Proceeding to Cap Universal Service Fund  |  Federal Communications Commission
Survey Explores Broadband Impact on Local Economies, Telehealth, Education  |  Read below  |  Craig Settles  |  Op-Ed  |  Benton Foundation
Rural Electric Cooperatives: Pole Attachment Policies and Issues  |  Read below  |  Brian O’Hara  |  Research  |  National Rural Electric Cooperative Association
Big Things Happening in Clarksville, Arkansas: Gigabit FTTH on the Way  |  Read below  |  Lisa Gonzalez  |  Institute for Local Self-Reliance
Beyond Connectivity: How California Libraries Can Leverage Bandwidth to Advance Community Goals  |  Aspen Institute
Smart Cities and Digital Equity  |  Read below  |  John Horrigan  |  Analysis  |  National Digital Inclusion Alliance
Sen Tammy Duckworth Joins 5 Other Senators To Introduce Bill to Address Predatory Phone Rates in Criminal Justice System  |  Read below  |  Sen Tammy Duckworth (D-IL)  |  US Senate
In the twisted world of prison communications, voicemail is an innovation  |  Read below  |  Hanna Kozlowska  |  Quartz
Service Meant to Monitor Inmates’ Calls Could Track You, Too  |  Read below  |  Jennifer Valentino-Devries  |  New York Times

Wireless

C-Band Alliance: You Want an Auction for Valuable Spectrum? We’ll Give You One  |  Read below  |  Joan Engebretson  |  telecompetitor
Sen Klobuchar Statement on Lawsuit to Block T-Mobile/Sprint Merger   |  Sen Amy Klobuchar (D-MN)
Analysis: T-Mobile-Sprint Deal Is on Life Support  |  Washington Post

Platforms ans Antitrust

“…And Justice for All”: Antitrust Enforcement and Digital Gatekeepers  |  Read below  |  Assistant Attorney General Makan Delrahim  |  Speech  |  Department of Justice
Special Issue: Antitrust and the Platform Economy  |  Review of Industrial Organization
Facebook Worries Emails Could Show Zuckerberg Knew of Questionable Privacy Practices  |  Read below  |  John McKinnon, Emily Glazer, Deepa Seetharaman, Jeff Horwitz  |  Wall Street Journal
Facebook chief Mark Zuckerberg reached out to Speaker Pelosi. She hasn’t called him back.  |  Washington Post
Facebook Watch Hits 140 Million Daily Active Users, Up 47% From December  |  Facebook
Pinterest lands smack in the middle of the deplatforming wars  |  Fast Company
Rep. Ro Khanna wants tech companies to collaborate on disinformation  |  Washington Post
Charles Koch Institute op-ed: Social media is not a source of peril, Sen. Josh Hawley, it's a powerful tool  |  USA Today

Journalism

Digital News Report 2019  |  Reuters
Even people who like paying for news usually only pay for one subscription  |  Nieman Lab
Mary Meeker’s slide deck: The “opportunity gap” has closed for mobile ad potential. It's scary for newspapers.  |  Nieman Lab
MSNBC and New York Times at odds over reporter appearances on Maddow  |  CNN
Antitrust wavier may not save news business  |  Axios

Privacy

Opinion: We Read 150 Privacy Policies. They Were an Incomprehensible Disaster.  |  New York Times
Editorial: Why Is America So Far Behind Europe on Digital Privacy?  |  New York Times
Facebook Worries Emails Could Show Zuckerberg Knew of Questionable Privacy Practices  |  Read below  |  John McKinnon, Emily Glazer, Deepa Seetharaman, Jeff Horwitz  |  Wall Street Journal

Elections

Senate Majority Leader McConnell is Making the 2020 Election Open Season for Hackers  |  New Yorker

Patents

Huawei Presses Verizon to Pay for Patents  |  Wall Street Journal

Agriculture

Inside the farm of the future  |  C|Net

Lobbying

Google Axes Lobbyists Amid Growing Government Scrutiny  |  Read below  |  Brody Mullins, Ted Mann  |  Wall Street Journal
Tech turns to K Street in antitrust fight  |  Hill, The
Lobbyists Do Not Have to Disclose Presentations to FCC's Broadband Deployment Advisory Committee  |  Federal Communications Commission

Policymakers

FCC Will Renew Charter of Advisory Committee on Diversity and Digital Empowerment  |  Read below  |  Katura Jackson  |  Public Notice  |  Federal Communications Commission
Patricia de Stacy Harrison, of the Corporation for Public Broadcasting, on YouTube and Trump  |  New York Times
Paula Kerger, The Woman Leading PBS Through TV’s Time of Turmoil  |  Wall Street Journal
Today's Top Stories

FCC Oversight

Senate Commerce Committee Oversight Hearing of the Federal Communications Commission

Robbie McBeath  |  Benton Foundation

The Senate Commerce Committee held an oversight hearing of the Federal Communications Commission. Some highlights:

  • FCC Chairman Ajit Pai announced at the hearing that he was circulating for a vote at the Aug open meeting a Report and Order that would provide more granular and accurate broadband data and maps. He said it would mean requiring broadband providers to report "where they actually offer service below the census block level." He said the FCC would also be looking to incorporate public feedback into that mapping efforts.
  • Chairman Pai took shots at Silicon Valley tech giants suggesting that they are the ones controlling what consumers see online, not the internet service providers. “The greatest threat to a free and open internet has been the unregulated Silicon Valley tech giants that do, in fact, today decide what you see and what you don’t,” he said. “There’s no transparency. There’s no consumer protections and I think bipartisan members of both congressional chambers have now come to that realization.”
  • Chairman Pai said he has had no contact with the White House over the T-Mobile/Sprint merger. 
  • Chairman Pai said the FCC remains confident that its freeing up of 25 GHz spectrum in the recent auction will not threaten important weather data collection. The National Ocean and Atmospheric Administration (NOAA) has suggested much higher interference protection is needed, while Chairman Pai said that the study NOAA is citing for that position is fundamentally flawed.

Broadband/Telecom

3rd Quarter 2019 USF Contribution Factor is 24.4 Percent

Public Notice  |  Federal Communications Commission

The Federal Communications Commission's Office of Managing Director announced that the proposed universal service contribution factor for the third quarter of 2019 will be 0.244 or 24.4 percent. 

Survey Explores Broadband Impact on Local Economies, Telehealth, Education

Craig Settles  |  Op-Ed  |  Benton Foundation

Everyone who’s concerned about community broadband needs to contact your economic development agency, department, whoever spearheads your community’s economic development. I’m surveying these professionals about broadband’s impact on local economies. Community broadband is advancing in many places nationwide. But it’s also taking a beating in some areas. The only way we can fight back, capture opportunities, and win challenges is to start with reliable data from those in the trenches. This is insanely important!! Nobody knows about local economies like economic development folks. The 2014 International Economic Development Council (IEDC) survey of economic development professionals, for example, revealed that 49% of members believe community broadband networks can encourage low-income, rural, and senior individuals to become entrepreneurs. This year’s survey explorers broadband’s impact on 1) personal economic development, 2) attracting homeowners to the community, 3) the Homework Gap, and 4) what factors are keeping residents from adopting broadband such as individuals’ digital literacy.

[Craig Settles assists cities and co-ops with business planning for broadband and telehealth.]

Rural Electric Cooperatives: Pole Attachment Policies and Issues

Brian O’Hara  |  Research  |  National Rural Electric Cooperative Association

Pole attachment rental rates are a fraction of the overall cost to build broadband systems in rural areas. Rather, the major impediments to rural broadband development are low population densities, high capital costs and other major operating expenses in rural areas. Because electric cooperatives are led by and belong to the communities they serve, they are keenly familiar with these challenges. The same economic factors that prevented for-profit electric utilities from extending service to rural areas in the 1930s exists today in relation to broadband. Policymakers should focus on these steps to close the digital divide and provide rural communities access to broadband:

  1. Improving the accuracy and veracity of broadband data to better identify and understand services gaps.
  2. Prioritize broadband funding, especially government grants, to projects in areas with the lowest population densities since that is the greatest barrier to deployment.
  3. Provide adequate funding to build broadband networks that will meet the growing speed and data needs.

Big Things Happening in Clarksville, Arkansas: Gigabit FTTH on the Way

Lisa Gonzalez  |  Institute for Local Self-Reliance

Clarksville (AR) began their journey toward better local connectivity like many other communities we’ve interview and written about: by first focusing on fiber as a tool to enhance electric utility efficiencies. Four years after making the choice to deploy fiber, the town has chosen to use that fiber to offer Internet access to the community. Gigabit connectivity is on the way to every premise in Clarksville. This past legislative session, restrictions in AR eased somewhat when lawmakers made changes to allow local communities to apply for federal grants. In another positive development, the state legislature clarified state law so municipalities can bond to finance broadband infrastructure. SB 471 passed and was adopted into law in April. At the end of April, Clarksville issued revenue bonds for a 15 year term. The issue included $7.5 million for the fiber project and included additional funding for equipment they need for their smart grid project, and equipment for the water treatment plant. 

Smart Cities and Digital Equity

John Horrigan  |  Analysis  |  National Digital Inclusion Alliance

Cities across the US are trying to become “smart cities,” as they invest in digital technologies to help monitor the environment, enhance mobility, and improve the delivery of municipal services. An examination of several cities which have sought to embrace smart city technology while keeping equity in the forefront shows that:

  • Planning makes a difference: A number of cities have conducted planning exercises that explicitly takes equity into account for smart city investments. Often, this planning is part of years-long municipal investment in and attention to the local impacts of digital technology.
  • City leadership matters: Cities that made the smart city-equity link often do so because elected officials make it a priority. This shows up in organizational charts, i.e., dedicated city staff whose jobs focuses on encouraging city departments to examine how smart city initiatives impact equity and can be vehicles to improve digital equity.
  • Community outreach can promote buy-in: Many cities actively reach out to all segments of the community not just to educate them about smart city technologies, but to elicit feedback from citizens. By making the smart city dialogue a co-creative process, cities have a better chance of making sure the smart city is equitable.
  • Finding pressure points for fund-raising can bear fruit: Cities need resources for digital inclusion and smart cities, and some places have raised funds for inclusion through local franchise agreements with cable and telecom companies for infrastructure buildout. This last point comes with a red flag. The Federal Communications Commission has constrained cities’ ability to charge franchise fees for buildout of a key smart city technology – 5G wireless networks. Given that, and absent repeal of the FCC’s rule, Congress should consider a smart cities grant program that gives cities the resources to plan for digital inclusion as investments in smart cities continue to unfold. The recent introduction of the Digital Equity Act offers a potential vehicle for funding such a program.

Sen Tammy Duckworth Joins 5 Other Senators To Introduce Bill to Address Predatory Phone Rates in Criminal Justice System

Sen Tammy Duckworth (D-IL)  |  US Senate

Sens Tammy Duckworth (D-IL), Rob Portman (R-OH), Cory Booker (D-NJ), Brian Schatz (D-HI), Ed Markey (D-MA), and Angus King (I-ME) introduced the Martha Wright-Reed Just and Reasonable Communications Act to strengthen the nation’s criminal justice system. This bipartisan bill would help families keep in touch with their incarcerated family members, and would address long-standing concerns about the prohibitively expensive and predatory price of phone calls that incarcerated individuals at correctional facilities across the US are forced to pay. The bipartisan legislation would affirm the Federal Communications Commission’s authority to address a market failure to protect family, clergy, and counsel who communicate with prisoners, inmates, and detainees. The legislation also makes clear that the obligations of fairness in inmate communications apply to all individuals, including those living with a disability. Specifically, this legislation:

  • Ensures consumers receive just and reasonable charges for all intra- and interstate inmate calling, drawing on the existing standard in Section 202 of the Communications Act. 
  • Ensures just and reasonable rates apply regardless of technology used, like video visitation services and other advanced communications services. This also ensures that the needs of inmates with disabilities is addressed. 
  • Permits the FCC to use its traditional procedures and authority to address unjust and unreasonable inmate calling rates.

In the twisted world of prison communications, voicemail is an innovation

Hanna Kozlowska  |  Quartz

For people in prisons and jails, voicemail can still be very useful. Corrio is a Washington state-based company co-founded by Alex Peder, a former inmate himself, that offers a service that lets inmates call a special number assigned to them and then record a voice message that gets texted as a link to any person the prison or jail has allowed them to contact. It connects the facility’s network to Corrio’s private switch network, and a person on the outside can send a regular text to the inmate, as well as record voicemails. The inmate can check their messages at any time they have access to a phone, listening to the recording or to texts that are automatically converted into voice messages. The aim for Corrio’s messaging platform, which launched June 11, is to make the communication process easier, given that maintaining contact with the outside world has consistently been proven to be beneficial for the incarcerated person’s wellbeing and rehabilitation. Peder said that in tests, the messages were largely very short, concise, often as simple as “I love you.”

Service Meant to Monitor Inmates’ Calls Could Track You, Too

Jennifer Valentino-Devries  |  New York Times

Thousands of jails and prisons across the US use a company called Securus Technologies to provide and monitor calls to inmates. But the former sheriff of Mississippi County (MO) used a lesser-known Securus service to track people’s cellphones, including those of other officers, without court orders, according to charges filed against him in state and federal court. The service can find the whereabouts of almost any cellphone in the country within seconds. It does this by going through a system typically used by marketers and other companies to get location data from major cellphone carriers, including AT&T, Sprint, T-Mobile and Verizon. As location tracking has become more accurate, and as more people carry their phones at every waking moment, the ability of law enforcement officers and companies like Securus to get that data has become an ever greater privacy concern.

Platforms/Antitrust

“…And Justice for All”: Antitrust Enforcement and Digital Gatekeepers

Assistant Attorney General Makan Delrahim  |  Speech  |  Department of Justice

e digital economy is a fact of life, but it is not all things to all people.  There has been robust public discussion about whether the broader economy, undoubtedly transformed by digital technologies, is working well for everyone.  While some commenters have tried to dispatch the antitrust laws to address these problems, I do not believe the antitrust laws are bent towards values other than competition. Therefore, the right question is whether a defined market is competitive.  That is the province of the antitrust laws.... As we think about antitrust enforcement in the digital economy, the key issues that antitrust enforcers must untangle are whether a company is growing due to superior price, quality, and innovation, or whether some transaction or business practice is, on balance, anticompetitive in purpose and effect.  

  1. As the Microsoft case and other enforcement actions involving digital technologies show, we already have in our possession the tools we need to enforce the antitrust laws in cases involving digital technologies.  U.S. antitrust law is flexible enough to be applied to markets old and new. 
  2. In order to understand what conduct is anticompetitive and thus unlawful, the Antitrust Division works hard to become expert on the commercial realities of the digital economy. 
  3. Clever positioning should not obscure what is otherwise ordinary evidence of an antitrust violation.  Where a company has market power, enforcers should be circumspect about conduct that does not plausibly advance a legitimate business objective and transactions that eliminate competition.  Depending on the commercial realities of a given market, enforcers may uncover facts that support taking a longer-than-usual view of entry.
  4. Antitrust Division does not take a myopic view of competition.  Many recent calls for antitrust reform, or more radical change, are premised on the incorrect notion that antitrust policy is only concerned with keeping prices low.  It is well-settled, however, that competition has price and non-price dimensions.

Wireless

C-Band Alliance: You Want an Auction for Valuable Spectrum? We’ll Give You One

Joan Engebretson  |  telecompetitor

Four satellite companies known as the C-Band Alliance have enlisted a spectrum auction expert to develop a plan for an auction of spectrum in the coveted spectrum band known as the C-band. The alliance – comprised of Intelsat, SES, Eutelsat and Telesat — has outlined that plan to the Federal Communications Commission and a white paper with more details about the C-Band Alliance auction proposal is expected to be released soon. The entire band is comprised of 500 MHz of spectrum in total and is considered “mid-band” spectrum, a band that wireless network operators are expected to use to support 5G deployments. The idea of current license holders sharing auction proceeds with the government is not a new one. That approach was used in a previous auction of TV broadcast spectrum. What would be unprecedented is having a private entity, rather than the FCC, in charge of the auction. According to the C-Band Alliance, the advantage of this approach is that spectrum could be made available for 5G deployments more quickly, helping the U.S. to remain on the vanguard of 5G technology.

Privacy

Facebook Worries Emails Could Show Zuckerberg Knew of Questionable Privacy Practices

John McKinnon, Emily Glazer, Deepa Seetharaman, Jeff Horwitz  |  Wall Street Journal

Apparently, Facebook uncovered emails that appear to connect Chief Executive Mark Zuckerberg to potentially problematic privacy practices at the company. Within the company, the unearthing of the emails in the process of responding to a continuing federal privacy investigation has raised concerns that they would be harmful to Facebook—at least from a public-relations standpoint—if they were to become public. The potential impact of the internal emails has been a factor in the tech giant’s desire to reach a speedy settlement of the investigation by the Federal Trade Commission. Facebook is operating under a 2012 consent decree with the agency related to privacy, and the emails sent around that time suggest that Zuckerberg and other senior executives didn’t make compliance with the FTC order a priority.

Lobbying

Google Axes Lobbyists Amid Growing Government Scrutiny

Brody Mullins, Ted Mann  |  Wall Street Journal

Google has fired about a half-dozen of its largest lobbying firms as part of a major overhaul of its global government affairs and policy operations amid the prospect of greater government scrutiny of its businesses. In the past few months, the company has shaken up its roster of lobbying firms, restructured its Washington policy team, and lost two senior officials who helped build its influence operation into one of the largest in the nation’s capital. The firms Google has dumped make up about half of the company’s more than $20 million annual lobbying bill. Apparently, the company overhauled its policy team to better reflect the global reach of its commercial ambitions and handle potential entanglements with regulators and lawmakers across regions and markets.

Policymakers

FCC Will Renew Charter of Advisory Committee on Diversity and Digital Empowerment

Katura Jackson  |  Public Notice  |  Federal Communications Commission

The Federal Communications Commission is renewing the charter of the Advisory Committee on Diversity and Digital Empowerment for a two-year period. The purpose of the Committee is to make recommendations to the FCC on how to empower disadvantaged communities and accelerate the entry of small businesses, including those owned by women and minorities, into the media, digital news and information, and audio and video programming industries, including as owners, suppliers, and employees. It is also to provide recommendations to the FCC on how to ensure that disadvantaged communities are not denied the wide range of opportunities made possible by next-generation networks. This Committee is intended to provide an effective means for stakeholders with interests in these areas to exchange ideas and develop recommendations to the Commission on media ownership and procurement opportunities, empowering communities in order to spur educational, economic, and civic development, and consumer access to digital technologies.

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Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org) and Robbie McBeath (rmcbeath AT benton DOT org) — we welcome your comments.


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